Marginal Well

Definition(s)


Marginal Well

Any oil well which is incapable of producing its maximum capacity of oil except by pumping, gas lift, or other means of artificial lift, and which well so equipped is capable, under normal unrestricted operating conditions, of producing such daily quantities of oil as herein set out, as would be damaged, or result in a loss of production ultimately recoverable, or cause the premature abandonment of same, if its maximum daily production were artificially curtailed. The following described wells shall be deemed “marginal wells” in this state.

  1. Any oil well incapable of producing its maximum daily capacity of oil except by pumping, gas lift, or other means of artificial lift, within this state and having a maximum daily capacity for production of 10 barrels or less, averaged over the preceding 10 consecutive days of stabilized production, producing from a depth of 2,000 feet or less.
  2. Any oil well incapable of producing its maximum daily capacity of oil except by pumping, gas lift, or other means of artificial lift, within this state and having a maximum daily capacity for production of 20 barrels or less, averaged over the preceding 10 consecutive days of stabilized production, producing from a horizon deeper than 2,000 feet and less in depth than 4,000 feet.
  3. Any oil well incapable of producing its maximum daily capacity of oil except by pumping, gas lift, or other means of artificial lift, within this state and having a maximum daily capacity for production of 25 barrels or less, averaged over the preceding 10 consecutive days of stabilized production, producing from a horizon deeper than 4,000 feet and less in depth than 6,000 feet.
  4. Any oil well incapable of producing its maximum daily capacity of oil except by pumping, gas lift, or other means of artificial lift, within this state and having a maximum daily capacity for production of 30 barrels or less, averaged over the preceding 10 consecutive days of stabilized production, producing from a horizon deeper than 6,000 feet and less in depth than 8,000 feet.
  5. Any oil well incapable of producing its maximum daily capacity of oil except by pumping, gas lift, or other means of artificial lift, within this state and having a maximum daily capacity for production of 35 barrels or less, averaged over the preceding 10 consecutive days of stabilized production, producing from a horizon deeper than 8,000 feet. (Reference Order Number 20-59,200, effective May 1, 1969.).1

Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. Regulations